Reducing the Epidemic of Poverty and Ending the ...€¦ · • Dallas joins Philadelphia and Baltimore as cities with the largest disparity. • According to the Urban Institute’s

Reducing the Epidemic of Poverty and Ending the Opportunity Gap

Mayor’s Task Force on PovertyBriefing to the Dallas City Council

September 7, 2016

Mark Clayton - City Councilman District 9

City Council Liaison,

Mayor’s Task Force on Poverty

Regina Montoya

Chair,

Mayor’s Task Force on Poverty

We Must Recognize the Problem

2

“The gap between the haves and the have-nots is still too wide. We must close that gap.”

Mayor Mike RawlingsNew Cities Summit 2014,

Opening Keynote

Acknowledgments

3

The Mayor’s Task Force on Poverty would like to thank the following individuals andorganizations for their contributions to this report:

Aberg Center for LiteracyShana HarrisonExecutive Director

Catholic Charities of DallasDavid WoodyardCEO and President

Vanna SlaughterDirector of Immigration and Legal Services

Jaime TrevinoAttorney and Program ManagerImmigration and Legal Services

ChildCareGroupTori Mannes, President and Chief Executive Officer

City of Dallas Theresa O’DonnellChief Resilience Officer

Luis TamayoChief Planner, Department of Planning and Urban Design

Kati Beth WoodAssistant, Resilience Office

Matthew BangcayaCoordinator, Intergovernmental Services

The ConcilioFlorencia Velasco FortnerChief Executive Officer

Acknowledgments

4

Dallas Area Habitat for HumanityBill HallChief Executive Officer

Cyndy LutzVice President of Neighborhood Investment

Kristen SchulzDirector of Public Policy

David DruryDirector of Research

Jessica MacKinnonResearch and Geospatial Analyst

Dallas Independent School District (DISD)Miguel SolisTrustee, District 8

Dallas Women’s FoundationDena L. Jackson, Ph.D.Vice President, Grants and Research

Early Matters and Commit2DallasJaime Hanks MeyersDirector of Early Education

Educational First StepsJohn R. BreitfellerExecutive Director

Federal Reserve Bank of DallasRoy C. LopezCommunity Development

Pia M. Orrenius, Ph.D.Vice President and Senior Economist

Frazier Revitalization Inc.Dorothy HopkinsPresident and CEO

Hank LawsonCommunity Engagement Advisor

Acknowledgments

5

Literacy Instruction for Texas (LIFT)Lisa HembryPresident/CEO

Amber SimsVP of Strategic Partnerships

North Texas Alliance to Reduce Teen Pregnancy (NTARuTP)Terry Goltz GreenbergExecutive DirectorCourtney Peters, MPHProject Director

On the Road LendingMichelle CorsonFounder/CEO

United Way of Metropolitan DallasSusan HoffChief Strategy Impact and Operations Officer

University of Texas-DallasDr. Timothy M. BrayDirector of the Institute for Urban Policy Research

Michael R. Veale

VMLCSarah PapertExecutive Director

WiNGSJennifer M. WareChief Executive Officer

Workforce Solutions Greater DallasLaurie Bouillion LarreaPresident

Richard PerezResource Development and Deployment Manager

Purpose of the briefing

• Present the findings and recommendations of the Mayor’s Taskforce on Poverty to the Dallas City Council

– Review the current and past statistics

– Understand the geography of poverty

– Explain the trends and drivers that propel poverty in Dallas

• Recommend solutions that will reduce the epidemic of poverty and end the opportunity gap

6

The Opportunity Gap

The Dallas-Fort Worth economy is robust and growing: – The Dallas-Fort Worth (D-FW) region is a magnet for new companies and new

residents. The region ranks among the top three U.S. Metro areas for business expansions, relocations, and employment growth. This positive trend is projected to continue through 2023. (Dallas Regional Chamber)

– Job growth has increased over 15% from 2000 to 2014 (Federal Reserve Bank of Dallas)

7

However:

“Poverty in Dallas has reached Crisis proportions” (Neighborhood Plus briefing Feb 18, 2015)

“In dramatic contrast to the surrounding region’s economic prosperity, the city of Dallas has one of the highest concentrations of poverty in the nation. Many of these residents are unemployed or underemployed, preventing them from benefiting from the region’s economic growth. This opportunity gap is disproportionately affecting African-Americans and Hispanics, who represent a large and growing pool of potential middle-skill workers, just as the region needs to expand its talent pipeline.”

(JP Morgan Chase & Co., New Skills at Work Report, May 2015)

Dallas Leads the Nation In Inequity

• Dallas has the highest neighborhood inequity of any city in the U.S. larger than 250,000

• Dallas joins Philadelphia and Baltimore as cities with the largest disparity.

• According to the Urban Institute’s Rolf Pendall, “Extremely low average wages for poor communities, along with a regional education system that trails other parts of the country, contribute to this problem.”

8Source: Urban Institute as reported by Governing Magazine

Other than

English43%

English57%

Dallas Today: A Snap Shot

9

Country of Birth

Language Spoken at Home

Foreign Born24%

Born in US

76%

42%

30%

25%

3%

Hispanic

White

African-American

Other

Race / Ethnicity

Educational Attainment

Source: U.S. Census Bureau, 2010-2014 American Community Survey 5-Year Estimates

13.60%

12.10%

22.10%

18.00%4.40%

18.60%

11.10% Less than 9th grade

9th to 12th grade, no diploma

High school graduate (includes equivalency)

Some college, no degree

Associate's degree

Bachelor's degree

Graduate or professional degree

Dallas Poverty Facts

• Poverty rate in the City of Dallas increased 42% over the past 15 years, while the City’s total population only increased by 4.4% during the same time period.

• Almost 1 in 3 Hispanics and African-Americans live below the poverty line

• Almost 153,000 Latinos and more than 94,722 African-Americans live in poverty in Dallas.

Source: U.S. Census Bureau, 2010-2014 American Community Survey 5-Year Estimates 10

Children are the Face of Poverty

11

Too Many Dallas Children live in Poverty

152,822 families in Dallas are living at or below the poverty level.


% of Families with Children Below Poverty Level

Children are the Face of Poverty

12

Too Many Dallas Children live in Poverty

In calendar year 2014, a family of two adults and two children fell into the following poverty categories based on their annual income:

Source: Kids Count Data Center

Threshold Category Annual Income Poverty Label

150% $36,012 Near Poverty

100% $24,008 Poverty

50% $12,004 Extreme Poverty In 2014, 184,000 Dallas children were living below 150% of the poverty level.

50,000 children were living in extreme poverty in 2014.

The Geography of Poverty

13

Households in Poverty Percent in Poverty Families in Poverty Single Mothers in Poverty

District 1 5,963 22.7% 3,801 1,517

District 2 8,048 22.3% 3,777 1,872

District 3 6,561 21.5% 4,658 2,721

District 4 9,989 36.2% 6,281 3,550

District 5 5,618 26.0% 4,494 1,801

District 6 6,385 27.0% 4,664 2,196

District 7 9,531 32.6% 5,998 3,587

District 8 8,334 29.4% 5,428 3,553District 9 5,533 15.4% 3,088 1,559District 10 6,570 18.2% 3,847 1,787

District 11 5,489 13.5% 3,150 1,794

District 12 5,473 12.1% 2,334 1,286

District 13 4,683 13.1% 2,576 1,082

District 14 5,444 10.7% 1,209 600

0 2,000 4,000 6,000 8,000 10,00012,000

District 1

District 2

District 3

District 4

District 5

District 6

District 7

District 8

District 9

District 10

District 11

District 12

District 13

District 14

Households Below Poverty Level

Poverty exists in all Council Districts

Data from 2014 American Community Survey obtained through ESRI Community Analyst

Neighborhood Poverty 2000

14


15


16

Concentrations of Poverty 2014Concentrations of Poverty

exist in all Council Districts

17

Concentrations of Poverty 2014In some Dallas

neighborhoods, the percentage of households in poverty exceed 50% and even 70%

18

383 Total Census TractsPercentage of employees in poverty

The Working Poor


17,720

24,36127,378

0

5,000

10,000

15,000

20,000

25,000

30,000

2005 2010 2014

Full-time Employees Living in Poverty

Full-time Employees in Poverty

In 2014, over 27,300 residents were living in poverty despite full-time employment.

19

Drivers of Poverty

20

• Barriers to finding living wage employment and the decline in median income– Low educational attainment rates

– Limited English proficiency

– Low literacy rates

– Undocumented status

• Housing Affordability– Low home ownership rates

– High percentage of low income residents who rent

– Quality of units available in the rental market is poor

• Transportation access and costs

Drivers of Poverty

21

• Family structure– Generational poverty

– High percentage of households with children living in poverty

– High percentage of Single Female Head of Household

– High percentage of Teen-age pregnancy

• Physical and environmental conditions found in neighborhoods with high concentrations of poverty– Crime rates, violence, and dangerous conditions

– Lack of adequate infrastructure

– Food deserts and the lack of retail and commercial services

– Blighted lots and abandoned structures

Dallas Incomes

22

Dallas Household Incomes

28.6% 27.6%

16.6%

8.8%

18.3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Less than $25,000 $25,000 to $50,000 $50,000 to $75,000 $75,000 to $100,000 Over $100,000

Household Incomes

Decline of Median Income

Over half of Dallas households make less than $50,000 per year.

Total HouseholdsLess Than

25,000

25,000 to

50,000

50,000 to

75,000

75,000 to

100,000Over 100,000

467,501 131,835 128,095 78,540 42,076 86,955


Median Income is Declining

23

Despite the booming regional economy, median income in Dallas has continued to decline for over 30 years.

Source: Neighborhood Plus briefing Feb 18, 2015

$56,072

$60,803

$62,368

$53,469

$44,126

$45,252

$43,359

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

1969 1979 1989 1999 2005 2010 2014

Median Income in Dallas (Using 2014 $)

Median Income in Dallas (Using 2014$)

Sharp decline began in 2000

24

$35,000

$40,000

$45,000

$50,000

$55,000

$60,000

1975 1980 1985 1990 1995 2000 2005 2010 2015

Dallas Houston San Antonio Texas US Atlanta

USA

Texas

AtlantaSan AntonioHouston

Dallas

Decline of Median IncomeDrivers of Poverty

Sources: Median Household Income (Adjusted to 2013 Dollars) retrieved from Social Explorer of US Decennial Census 1980 (T53), 1990 (T43), 2000 (T93), and ACS 2008-2012 5 year estimates (T57)

Median Income

25

US Cities

Texas Cities

• The City of Dallas has the lowest median income among the major Texas cities.

• 181,652 households (renters and homeowners) are paying 30% or more of their income on housing costs.


Wealth and Financial Access

• 14% Unbanked– Percentage of households with neither a

checking nor savings account, 2013

• 22.1% Underbanked– Percentage of households that have a checking

and/or a savings account and have used alternative financial services in the past 12 months, 2013 26

• 36.4% Asset Poverty– Percentage of households without sufficient

net worth to subsist at the poverty level for three months in the absence of income, 2011

• 51.9% Liquid Asset Poverty– Percentage of households without sufficient

liquid assets to subsist at the poverty level for three months in the absence of income, 2011

City of Dallas

Estimated household wealth and financial access

GeographyAsset

Poverty

Liquid Asset

PovertyUnbanked Underbanked

Dallas 34.6% 51.9% 14.0% 22.1%

Dallas County 31.0% 49.2% 12.2% 21.7%

Collin County 17.2% 27.6% 4.0% 16.9%

Texas 23.8% 49.8% 10.4% 27.4%

US 25.4% 43.5% 7.0% 20.0%

Source: Corporation for Enterprise Development

36.4%

7.7%

Educational Attainment is Low and Limited English Proficiency is High

27

25.7%24.2%

13.0%

29.7% 29.8%

46.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

Dallas Houston Austin

No HS Diploma

College Degree

Dallas has the highest percent of individuals without a high school diploma and the lowest percentage of residents who hold a college degree

Source: Dallas Independent School District Data Packet for 2015-16 planning

6,701 or 49% of DISD second-graders have limited proficiency in English

At least a High School Education - 2014

At least some College Education - 2014

Limited English Proficiency - 2014

Homeownership Rates are Low

31

Drivers of Poverty

43% 45%55%

62% 63%

57% 56%45%

38% 37%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Dallas Houston SanAntonio

4-CountyRegion

Texas

Rented

Owned

• 20% of single-family homes in Dallas are rentals

• 47% of Dallas’ housing stock is multifamily

31%

18%13%

48%

25% 23%

0%

10%

20%

30%

40%

50%

60%

Live inUnaffordable

Housing

Cost-Burdened Severely Cost-Burdened

Owners

Renters

More than 1 in 10 housing units were vacant in 2013

Housing Stock

Housing Affordability

Source: Neighborhood Revitalization Plan for Dallas, February 2015

Rental vs. Homeownership

32

Drivers of Poverty Housing Affordability

Households with Children (2013)

43%62% 63%

57%38% 37%

Dallas 4 CountyRegion

TexasRenter Occupied Owner Occupied

57% of households

with children are renting

The majority of households with children in Dallas are renting.

Source: Neighborhood Plus briefing Feb 18, 2015

Public Transportation Options

33

Drivers of Poverty Transportation Access and Costs

• DART has the longest light rail system in the U.S. - 90 miles with 62 stations

• DART operates a fleet of over 650 buses that service almost 1200 bus stops

• Transit ridership is relatively low - DART ranks 23 out of 29 agencies

Source: Dallas Area Rapid Transit (DART)

Source: Hamidi, Shima and Ewing, Reid, How Affordable is HUD Affordable Housing, 2016

Public Transportation Options

34

Drivers of Poverty Transportation Access and Costs

• More than 77% of

HUD assisted housing

units are unaffordable

due to transportation

costs

• Less than 20% of jobs

are accessible by

transit in less than 90

minutes

Source: Hamidi, Shima and Ewing, Reid, How Affordable is HUD Affordable Housing, 2016

Source: The Affordability Index: A New Tool for Measuring the True Affordability of a Housing Choice, Center for Transit-Oriented Development and Center for Neighborhood Technology, Brookings Institute, January 2016.

Impacts of Poverty on Children

35

Drivers of Poverty Family Structure

38

37

35

34

33

33

31

30

20

10

0 5 10 15 20 25 30 35 40

DALLAS

PHILADELPHIA

HOUSTON

PHOENIX

LOS ANGELES

CHICAGO

SAN ANTONIO

NEW YORK CITY

SAN DIEGO

SAN JOSE

Percent of Poverty

Dallas has the Highest Child Poverty Rate of any City with a

Population over 1 Million

Source: Kids Count Data

Impacts of Poverty on Children

36

Drivers of Poverty Family Structure

The Neuroscience of Poverty

Scientists are now studying the effects of poverty on children’s brain development.

Research indicates that cognitive development is closely linked to socio-economic status.

These effects impact cognitive performance both intellectually and emotionally.The gap starts in early childhood and continues throughout brain development.

Source: Hayasaki, E. (2016, August 25). How Poverty Affects the Brain. Newsweek Magazine.

Single Mothers Have High Poverty Rates

37

Drivers of Poverty

48% of Single Mothers in Dallas live in poverty


Family Structure

48,178

50,809

54,149

45,000

46,000

47,000

48,000

49,000

50,000

51,000

52,000

53,000

54,000

55,000

2005 2010 2014

Single Mothers Living in Poverty

Single Mothers Living in Poverty

Single Mothers Have High Poverty Rates

38

Drivers of Poverty

$1.00

$0.44 $0.38

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

White Men Texas Latinas Dallas Latinas

Earn

ings

on

th

e D

olla

s

Women, in general, have less opportunity, but particularly women of color

Earnings data from Women’s Bureau of the Department of Labor

Family Structure

For every $1 a white, Non-Hispanic man

earns, a Dallas Latina earns $0.38

Teen Birth Rates are High

39

Drivers of Poverty

0

20

40

60

80

100

120

US Texas Dallas County Dallas NTARuPT ZipCodes

Tee

n B

irth

Rat

e (

/1

00

0 b

irth

s)

Zip codes 75203, 75212, 75215, 75216, and 75220 have teen birth rates similar to Burkina Faso, the Gambia and Somalia.

“...in certain zip codes, a teen girl has a higher chance of giving birth before age 19 than ever attending college.”

North Texas Alliance to Reduce Teen Pregnancy

Family Structure

Neighborhoods of Concentrated Poverty

40

Drivers of Poverty

Physical and environmental conditions found in neighborhoods with high concentrations of poverty

• High crime rates and incidents of violence• Lack of adequate infrastructure• Food deserts and the lack of retail and commercial services• Blighted lots and abandoned structures• Dangerous conditions

Concentrated Poverty

Recommendations

41

The Mayor’s Taskforce On Poverty recommends a number of long-term, medium-term and short-term solutions for reducing the epidemic of poverty and ending the Opportunity Gap in Dallas.

These solutions area organized under the following categories: – An operationalized and systemic approach to reduce poverty

– Building wealth and financial assets – ideas to increase earning potential and savings

– Decreasing major expenses – housing, transportation, and childcare

– Focus on children

Solutions

An Operational and Systematic Approach

42

Short Term:• Change focus of the CDBG program to an emphasis on alleviating poverty

– Presentation to Quality of Life in November

• Formalize Poverty Task Force into a Commission on Economic Opportunity– Include Director level staff from DISD, the City & DART – Meet quarterly at City Hall– Focus on drivers of poverty and solutions identified in this report

• Redefine Neighborhoods Plus– One staff person dedicated to research and data– One staff person dedicated to strategy and coordination of non-profits– One grant writer

• Shift narrative of poverty to recognize the plight of the working poor

Solutions


43

Medium:• Work with DART to find “Last Mile” solutions to employment

centers, such as the Inland Port• Work with DART to shift routes to reduce travel time to work to

under one hour• Consolidate CDBG

– Reduce administrative costs (i.e. childcare)– Look for smaller organizations that can achieve bigger scale

• Shift Neighborhood Plus towards a goal of 25,000 new, single family homes– Accelerate Land Bank– Develop plan for infrastructure TIF’s, REIT’s and Green Bonds

• Develop zoning incentives that encourage affordable housing

Solutions


44

Solutions

Long:• Create or focus one non-profit as a clearinghouse that

vets the results and impacts of non-profits• Scale Neighborhoods Plus to coordinate and provide

wrap-around services and integration• Create Office for Immigrants and Community Affairs• Bring to market infrastructure or Social Purpose REIT’s

and Green Bonds

Building Wealth and Assets

45

Short:

• Encourage private sector employers to offer ESL classes/programs at job centers

• Create public awareness campaign about ESL and Adult Literacy

– Make it personal, verbal, and intimate

• Sign on to the White House Task Force of New Americans

Solutions


46

Medium:

• Create trust in the community through developing safe zones and trust in local government

– Encourage immigrants to apply for citizenship

• Help with more access to financial literacy, access to benefits and savings

– At point of services

– At safe zones and community centers

• Target areas such as Vickery Meadows for adult literacy and ESL programs, and expand into other areas of the city

Solutions


47

Long:

• Focus intensely on 3 or 4 neighborhoods through land bank acquisition and infrastructure subsidies to develop stable, affordable housing

• Focus land bank on clustering

• Scale safe zones, community centers, libraries and non-profit distribution points to be one-stop shop for all benefits (i.eaccess to food, scorecard for available social services)

Solutions

Decreasing Major Expenses

48

Short:

• Approve Issuance of Green Bond- On the Road Lending

• Pass Chapter 27 Minimum Housing Standards

• Develop awareness campaign to get more people to VITA sites

• Partner with provider for free WIFI to at least one poor area

Solutions


49

Medium:

• Develop private sector alternatives to Pay Day Lending like BCL

• Work with DART for the “Last Mile” Solutions

– Inland Port

– Medical District

– Top 10 employment centers

• Increase funding and shift CDBG resources to down payment assistance, home repair/remediation

• Offer tax abatement for repair and upgrades

Solutions


50

Long:

• Establish a goal with DART to provide home-to-work public transit in 60 minutes or less

Solutions

Focus on Children

51

Short:

• Work with DISD to expand Pre-K to 5:00 PM

• Create public awareness campaign on Teen Pregnancy

• Add the funding of 0-3 Early Childhood Pre-K as a City legislative priority

Solutions

Focus on Children

52

Medium:

• Advocate and support DISD in its efforts for Choice and Career readiness schools

• Shift “SHAC” toward evidence based sex education

• Organize child care and Pre-K around transportation

Solutions

Focus on Children

53

Long:

• Focus DISD and Charter schools on cooperation based on capability and not competitiveness

• Work with business community and Chambers on quality summers jobs

• Organize 0-3 daycare for affordable, high quality childcare in neighborhoods of affected poverty

– Coordinate with DISD so economics work

– Make sure public understands the difference between pretty and effective

Solutions

A Call To Action

54

Being from Oak Cliff I thought that I would understand the struggles that my students were going through on the daily basis, but as a teacher I learned to check my own privilege and step back and learn from my students. I never had to deal with some of the struggles that they had to deal with on the daily basis, and from that I wanted to become an advocate for my students I wanted to fight for them to have the opportunities that students north of the Trinity had. My time at Bushman elementary school showed me that where there is ruin there is hope for treasure. "

Taylor ToynesTeacher, W.W. Bushman Elementary

55

Questions and Discussion

Appendix

56

• Catholic Charities of Dallas. White Paper—Poverty in Dallas: Recommendations. August, 31, 2016. https://ccdallas.org

• Literacy Instruction for Texas (LIFT). Strategic Adult Literacy Outreach Assessing Opportunities and Identifying Growth. November 2014. http://www.lift-texas.org

• North Texas Alliance to Reduce Teen Pregnancy (NTARUPT). The Mayor’s Task Force on Poverty Short, Mid, and Long Term Solutions. August 2016. http://www.ntarupt.org/

https://ccdallas.org/

http://www.lift-texas.org/

http://www.ntarupt.org/

Documents

Reducing the Epidemic of Poverty and Ending the ...€¦ · • Dallas joins Philadelphia and Baltimore as cities with the largest disparity. • According to the Urban Institute’s